For optimal viewing through your web browser or PDA, click here.

SPONSORED BY
Click Here
NADA.org
Monday, March 2, 2009 RSSSEND TO A FRIENDPRINT
Home | AdvocacyAffiliates | Convention | Jobs | Programs | Publications | Training | Services
At a Glance...
Top Stories
Automakers Pile on Incentives to Lure Car Buyers with Deals
Dealers Barely in Black
Emanuel Says GM Is Example of 'Day of Reckoning'
China's Geely May Bid for Volvo
NADA Used Car Guide Launches All-New Appraisal Product
NADA Update
Stimulus Legislation Mandates Temporary COBRA Premium Relief
Union Legislation Addressed in New Virtual Seminar
Seminar Takes 'Deeper Dive' into FTC Red Flags Rule
2010 Convention Workshop Proposals Now Being Accepted
Top Stories
Automakers Pile on Incentives to Lure Car Buyers with Deals

The continuing slump in auto sales is prompting makers, especially hard-hit Chrysler, to put some of the juiciest discounts yet on new vehicles. The six biggest automakers — General Motors , Ford Motor, Chrysler, Toyota, Honda and Nissan — offered the highest incentives last month of any February since Edmunds.com started tracking in 2002. The average discount for all automakers was $2,914, up $400 from a year ago. The total includes all the incentives that Edmunds could find, including cash-back offers and discounted finance rates. Industry sales for February, due out Tuesday, will show if the increased promotions had any impact. The average Chrysler, Dodge or Jeep vehicle is languishing for 130 days at dealerships, the longest of any of the six largest automakers. Ford is second at 113 days, followed by Nissan, GM, Honda and Toyota, Power Information Network reports. Even as they struggle to clear their lots, Chrysler dealers are under pressure to take more cars. Chrysler President James Press has been touring the country pounding home the message that survival depends on dealers ordering more cars.
Source: USA TODAY

[back to top]

Dealers Barely in Black

1% profit is worst in nearly 20 years — and could slide more
U.S. auto dealer profits slid to a nearly two-decade low in 2008 and could fall even more this year. According to the National Automobile Dealers Association, the average dealership made a net pretax profit last year of just 1.0 percent of sales, down from 1.5 percent in 2007. The last time profitability dropped so low was in 1989 through 1991, said Paul Taylor, NADA's chief economist. Taylor told Automotive News that he expects little or no profit improvement until the second half of this year — if then. Taylor said reduced access to consumer credit "is at the root of the slowdown." NADA successfully lobbied the Obama administration and Congress to include tax breaks for new-vehicle buyers in the new economic stimulus law. NADA also wants federal officials to provide loan guarantees so dealers can buy inventory.
Source: Automotive News

[back to top]

Emanuel Says GM Is Example of 'Day of Reckoning'

White House Chief of Staff Rahm Emanuel said the plight of General Motors Corp. is “a wakeup call to America” that signals the need to increase energy independence and overhaul the nation’s health care system. Emanuel, a former Democratic congressman, said GM pursued a strategy over the past 20 to 30 years that left the biggest U.S. automaker in a “very unfortunate position.” The company relied on sales of “gas guzzlers,” never invested in alternative energy cars and instituted an outdated health care program that hurt the company’s business and employees, he said. “It’s an example in my view of what the president’s saying for this country, we have a day of reckoning,” Emanuel said today on CBS’s “Face the Nation” program. “That is the challenge we face as a country.” Emanuel said the [auto task force] panel, led by Treasury Secretary Tim Geithner and National Economic Council Director Lawrence Summers, is examining the plan to ensure its viability.
Source: Bloomberg

[back to top]

China's Geely May Bid for Volvo

BEIJING – Chinese auto maker Geely Automobile Holdings Ltd. is likely to submit a bid later this month to acquire Ford Motor Co.'s luxury Volvo car brand, two people familiar with the situation said. Offers for the Swedish unit of Ford are due to be submitted as early as next week, and as late as the end of the third week of March, the knowledgeable people said. In addition to Geely, there are at least three other possible bidders, one of which is also a Chinese company, according to one of the people. If its bid is successful, Geely intends to maintain Volvo as an international brand, rather than turning it into a brand more focused on China, the knowledgeable person said. However, one important move Geely might take is to shift some of Volvo's production to China to take advantage of China's less expensive labor and other benefits, the person said. Ford earlier this year began asking companies that were considering bids for Volvo to identify themselves. The U.S. company is streamlining its business by focusing on what it calls a "One Ford" strategy, emphasizing its Ford, Mercury and Lincoln brands, built on common global production platforms.
Source: The Wall Street Journal

[back to top]

NADA Used Car Guide Launches All-New Appraisal Product

NADA AppraisalPRO, a groundbreaking used-vehicle appraisal product from NADA Used Car Guide, is now available for use by NADA members. It provides dealers with the most complete view of their used-car market ever available in a single, affordable online tool. NADA AppraisalPRO incorporates the latest information and data from six industry leaders: NADA Used Car Guide (Guide values); AutoTrader.com (retail asking prices); J.D. Power and Associates/Power Information Network (retail sales transactions); Manheim Market Report (auction sales transactions); vAuto (used-vehicle market days supply); and Experian – AutoCheck (vehicle history reports).

NADA has tapped the expertise of auto auction veteran James F. Dodd to present this new product to dealers at auctions, NADA 20 Group meetings, conferences and other industry events across the country. Dodd has helped develop electronic delivery systems of real-time auction data to dealers during his 10 years at Southern Auto Auction and is well-positioned to recognize and explain the value of NADA AppraisalPRO to auto retailers.

NADA AppraisalPRO is available exclusively to dealer members of NADA and the National Independent Automobile Dealers Association at an affordable annual subscription rate of $150 per month for unlimited lookups per site. It can be billed annually or monthly. The product doesn’t require software, system integration or long-term commitments. For more information, visit www.nada.com/appraisal and place orders by calling (866) 974-6232.
Source: NADA Newswire

[back to top]

NADA Update
Stimulus Legislation Mandates Temporary COBRA Premium Relief

The American Recovery and Reinvestment Act of 2009 (ARRA) provides temporary, taxpayer-funded, premium relief for people otherwise eligible to elect to continue an employer's health plan coverage under the Consolidated Budget Reconciliation Act of 1985—known as COBRA. As of Feb. 17, 2009, the ARRA creates a temporary program of premium relief for Assistance Eligible Individuals (AEIs). AEIs are those who become COBRA eligible between Sept. 1, 2008 and Dec. 31, 2009. AEIs who elect continuation coverage may receive a 65 percent plan continuation premium discount. In other words, where employers normally require such individuals to pay 100 percent of COBRA plan premiums, AEIs may only be required to pay 35 percent under this temporary program. The Department of Labor (DOL) will issue a new model notice form by March 19, 2009. NADA suggests that dealers use that form to issue the new required notice to AEIs. For more information and details on what to do, click here.

[back to top]

Union Legislation Addressed in New Virtual Seminar

The so-called Employee Free Choice Act (EFCA) could become law in 2009 and usher in the most dramatic pro-union shift in federal labor law in U.S. history. The EFCA would eliminate the secret ballot in union representation elections, escalating labor union membership, returning traditional labor issues to the forefront—and forcing dealerships to bargain with unions.

To help dealerships understand the issues and meet the challenges they present, NADA has asked D. Gerald Coker, a partner in the law firm Ford & Harrison LLP, to conduct a virtual seminar on March 12 from 1 to 2:30 p.m. EST. In “Responding to Organized Labor: Defending Workplace Democracy,” Coker will discuss the current and proposed federal labor legislation, analyze how the EFCA would affect union organizing strategies at dealerships and present a 10-Point Strategic Action Plan for dealerships to reduce potential vulnerability and improve employee relations. Participants’ questions will be addressed during the final 15 minutes of the seminar.

The fee for this important virtual seminar is $199 per computer connection. To register, visit www.nada.org/seminars or call (800) 252-6232, ext. 2.

[back to top]

Seminar Takes 'Deeper Dive' into FTC Red Flags Rule

Attorneys from the FTC’s Division of Privacy and Identity Protection—which drafted and enforces the Red Flags Rule—will present a virtual seminar “A Deeper Dive into the FTC Red Flags Rule” on March 26 from 1 to 3 p.m. EST.

With the revised May 1 enforcement date approaching, dealers should ensure that their required Identity Theft Prevention Programs incorporate all of their covered accounts, include all relevant Red Flags, contain effective response and detection procedures, address all the Rule’s other requirements, and are tailored to their particular operations. It's a daunting task in view of the Rule’s general provisions that encompass all types of financial institutions and creditors.

To assist dealers in understanding how the Rule applies to dealership operations, FTC attorneys will join NADA Regulatory Affairs Director Paul Metrey to recap the required elements of the Red Flags and Address Discrepancy Rules and examine implementation considerations for dealers—and then, we’ll open the phone lines so dealers can present their questions directly to the FTC attorneys. Dealers should consider attending the “Deeper Dive” seminar even if they attended one of the previous Red Flags Rule virtual seminars. If you still have any questions, now is the time to ask. We’ll have a great team to answer your questions. And be sure to bring your copy of NADA's A Dealer Guide to the FTC Red Flags and Address Discrepancy Rules.

The fee for this important virtual seminar is $199 per computer connection. To register, visit www.nada.org/seminars or call (800) 252-6232, ext. 2.

[back to top]

2010 Convention Workshop Proposals Now Being Accepted

Proposals are now being accepted for speakers who are interested in presenting a workshop at the 2010 NADA Convention & Exposition in Orlando, Fla., Feb. 13-16. Topics that are applicable to the current state of the U.S. automobile industry are strongly preferred. To download the proposal, go to www.nada.org/workshops. Completed proposals should be postmarked by midnight, April 30, 2009. For more information, contact NADA Management Education at (703) 821-7227 or workshops@nada.org.

[back to top]

 
Featured Video
 
 

 NADA Tackles Industry Crisis


More Video Highlights

Quotable
 
"It's an example in my view of what the president's saying for this country, we have a day of reckoning. That is the challenge we face as a country."

    -- White House Chief of Staff Rahm Emanuel on CBS's "Face the Nation" program says the plight of GM is "a wakeup call to America" that signals the need to increase energy independence and overhaul the nation’s health care system, Bloomberg, March 1
Member Products & Services
 

NADA Used Car Guide Unveils Used-Vehicle Appraisal Product for Dealers
NADA Used Car Guide is introducing a unique and affordable new appraisal product called NADA AppraisalPRO, which provides a complete picture of the used-vehicle market in one location. The online tool provides dealers with the flexibility to define the market area and customize each appraisal by making adjustments to determine the best number for each and every trade-in. NADA AppraisalPRO will be available at a low introductory monthly subscription rate of $150 for unlimited lookups per location. For more information, visit www.nada.com/appraisal. To place an order, call (866) 974-6232.

Video Highlights
 
  

 
"The next two months are critical to the future of our industry as we know it," says NADA Chairman John McEleney, addressing a crowd of about 5,000 at the general session of the NADA convention in New Orleans.

NBC: "Demise of local car dealerships leaves big dent."
2009 Convention in New Orleans
NADA on the Front Lines


Click here for more NADA-TV reports.

 
Click Here
Search Back Issues | Unsubscribe | Subscribe | Manage your subscription | email us
NADA For more information on NADA, visit www.nada.org or contact NADA, 8400 Westpark Drive, McLean, VA 22102. This email may contain an advertisement of NADA products and services. Any opinions or statements contained herein do not necessarily reflect the views of NADA. Factual errors are the responsibility of the listed publication. If you are a franchised new-car or -truck dealer and would like to become a member of NADA, please visit the Join NADA section of www.nada.org. Questions or comments concerning NADA Headlines content may be directed to media@nada.org.